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Derivative strategy on Motherson Sumi by HDFC Securities

Derivative strategy on Motherson Sumi by Vinay Rajani - PCG Desk, HDFC Securities:

Vinay Rajani  |  New Delhi 

Derivative strategy on Motherson Sumi by HDFC Securities

on by Vinay Rajani - PCG Desk, HDFC Securities:

Buy MothersonSumi March 320 CALL at Rs 8

Stop loss: Rs 5
Target: Rs 16

Rationale: We have seen long positions being built in futures on 8th March, where we have seen rise of more than 4% in open interest with price rise of 2%.

Positive divergence is observed on the daily charts, where price making lower bottoms and RSI oscillator making higher bottoms, indicating probable bullish reversal.

Stock price found support around weekly historical multiple bottoms placed around 300.

Momentum indicator MACD has shown positive crossover on the short term charts

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Fri, March 09 2018. 08:18 IST
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